greystones

Cycle to Work Scheme

What is the cycle to Work Scheme?

The Cycle to Work Scheme is a Government tax relief initiative which
allows Employers to buy bikes and accessories up to
€1000 tax-free for their Employees and deduct the net cost from
their Employees' salaries over 1 to 12 months.
The benefit is not subject to Benefit-in-Kind Tax.

Further Details are available at:

www.bikescheme.ie

www.revenue.ie/en/practitioner/law/bik-exemption-for-bicycles.pdf

What can you buy?

Employees can spend up to €1000 on a bicycle and accessories and save up to 52% at the top tax rate.

We offer workplace presentations outlining the scheme and it's benefits to the Employer and Employee including bike and equipment demonstrations free of charge at a time convenient to you.

Employee commute time is more reliable

Reduced cost of parking spaces

Reduce pollution of commuting employees

How Does It work?

Limit on the value of purchases is €1,000 for each employee

The exemption may only apply once in any five year period in respect of any employee.

The bicycle can be funded by either the employer or through salary sacrifice of the employee but it must be purchased by the employer. Where funded by salary sacrifice there will be savings on tax, PRSI and levies.

If an employee is on the top tax rate, and €1,000 is spent on a bike and accessories, a saving of €520 is made by the employee and the employer also saves on PRSI.

Employers will not be permitted to purchase bikes for their employees where they do not believe that they will be used for cycling to and from work by the employees in question.

Selecting the right bike.

We will help you select the bike most suited to your needs.

Contact us to find out more about the scheme.

Employee Savings with Bike to Work

Example savings*

Higher rate taxpayer: 40% Tax + 7% PRSI + 4% Levies = 51%

Cost of bike and accessories

€250

€500

€750

€1000

Tax relief saving

51%

51%

51%

51%

Tax relief saving

€128

€255

€383

€510

Net Cost

€123

€245

€368

€490

Cost split over 12 months

€10

€20

€30

€40

Example savings*

Basic rate taxpayer: 20% Tax + 7% PRSI + 4% Levies = 31%

Cost of bike and accessories

€250

€500

€750

€1000

Tax relief saving

31%

31%

31%

31%

Tax relief saving

€78

€155

€233

€310

Net Cost

€173

€345

€518

€690

Cost split over 12 months

€14

€29

€43

€58

*Actual savings will depend on each individuals personal circumstances. Above is a typical example of savings possible as both a Basic Rate taxpayer (20%) and a Higher Rate taxpayer (40%).